Orexo sells Abstral® in the United States to Galena Biopharma, Inc.

Orexo AB (STO:ORX) today announced that it sold Abstral® (fentanyl)
Sublingual Tablets in the United States to Galena Biopharma, Inc.
(NASDAQ: GALE). Under the terms of the agreement, Galena Biopharma will
pay Orexo US$10 million upfront and an additional US$5 million within
the first twelve months after signing, plus low double digit royalties
and milestone payments based on pre-specified sales levels.

Galena Biopharma is a biopharmaceutical company developing innovative,
targeted oncology treatments that address major unmet medical needs to
advance cancer care. Abstral is a novel, rapidly-disintegrating,
sublingual (under the tongue) rapid acting formulation of fentanyl, a
well-established opioid, and is indicated for the management of
breakthrough pain.

Abstral is the leading rapid acting fentanyl product in Europe, where it
achieved full year sales of US$54 million in 2012, and continues to
exhibit a steady growth of 42% for Q4-2012 over Q4-2011. By the second
half of 2012, the average volume market share of Abstral in the major
European markets reached 29%. Abstral is marketed in Canada by Paladin
Labs, and has been filed for regulatory approval in Japan by Kyowa Hakko
Kirin Co Ltd.

Abstral was approved by the US Food and Drug Administration in 2011.
Orexo announced in June 2012 the acquisition of all US rights to Abstral
from ProStrakan Group plc as a part of a reconfiguration of the
worldwide rights to Abstral. With completion of the current transaction
Orexo has secured net cash payments of over SEK 700 million
(US$ 110 million) and in addition milestones and royalty payments, as a
result of the worldwide reconfiguration of Abstral.

During the last five months, Orexo has evaluated the optimal path
forward for Abstral in the United States. The US market for rapid acting
fentanyl products reached US$400 million in 2012. Given the continued
success that Abstral achieves in Europe, Orexo wanted to secure a
commercial team that could drive Abstral to a similar success in the
United States. To attain this, Abstral needed to be commercialized by a
dedicated partner with insight into the US pharmaceutical market for
treatment of cancer and pain. Market research has documented a
substantial unmet patient need for improved treatment of breakthrough
cancer pain across oncology centers in the United States.

“With Galena Biopharma, Orexo has found a very committed partner for
Abstral in the United States, who is well positioned to realize the
significant potential that exists for Abstral. I have been impressed by
the competence, experience and dedication to Abstral from the Galena
Biopharma management team” stated Nikolaj Sørensen, President and CEO of
Orexo. “With an agreement in place for Abstral, we have further
strengthened our financial capacity to ensure the optimal launch of
Zubsolv in the United States, which will be the primary focus for Orexo
in 2013”.

“Orexo is a proven leader in developing and commercializing novel
formulation technologies, particularly sublingual formulations to
enhance drug delivery and performance," said Mark J. Ahn, Ph.D.,
President and Chief Executive Officer of Galena Biopharma. "The
acquisition of Abstral in the United States diversifies and strengthens
our pipeline, providing Galena with an FDA approved product that will
become the cornerstone of our commercial strategy. Galena’s launch of
Abstral will build relationships with future prescribers of NeuVax™,
which is currently in global Phase 3 clinical trials in node positive
HER2 IHC 1+/2+ breast cancer patients. Medical oncologists, who manage
tumor and treatment related pain, predominantly prescribe transmucosal
immediate release fentanyl for advanced breast cancer and other solid
tumor patients who represent the majority of overall prescriptions."

Guggenheim Securities acted as exclusive financial advisor and Dechert
LLP as legal advisor to Orexo in connection with the transaction.

Telephone conference

CEO Nikolaj Sørensen will present the background to the agreement with
Galena Biopharma at a teleconference today at 1:00pm CET. The audiocast
will be accessible live via the link below and on the website.

Abstral is the novel, rapidly-disintegrating, sublingual (under the
tongue) formulation of fentanyl, a well-established opioid used for the
management of episodes of breakthrough pain experienced by cancer
patients who are already receiving opioid analgesics for chronic pain.
Abstral is approved in the EU, US and Canadian markets.

About Orexo

Orexo AB is an emerging specialty pharma company developing improved
treatments using proprietary drug delivery technology. Orexo’s expertise
is within the area of reformulation technologies and especially
sublingual formulations. The company has a portfolio of revenue
generating EU and US approved products currently marketed under licence
and a pipeline of several reformulations of approved compounds for areas
of unmet medical need. Orexo also has collaboration projects with
several international pharma companies. Orexo AB is headquartered in
Sweden has 90 employees and is listed on NASDAQ-OMX. The largest
shareholders are Novo A/S and HealthCap. For information about Orexo AB
please visit www.orexo.com.